News Channel Mortgage

It is odd how anonymous the site looks…like no one wants to take credit for it. Why not say “sponsored by…blah blah”…are they concerned that it would discredit the site or their message?

Home buying is a very personal choice. It’s the right time for some and for others not. I totally agree w/Marlow’s comment 11.

Sierra, what do you think is a fair fee for a LO to receive for assisting with a modification if a home owner can contact a HUD counselor and have it done for free?

I've been providing more and more FHA loans over conforming lately.  It's really not too surprising.  FHA pricing has been very competitive with both rates and mortgage insurance--especially if your credit score is below 740 and if you don't have 20% for a down payment.   FHA mortgages can go up to 97% loan to value (3% down) on purchases.

FHA mortgages are a "full doc" loan meaning that you will need to provide a 2 year employment history (your education can count towards this if it's related to your employment) along with 30 days of income.   In addition, your down payment must be documented (bank statements, asset accounts--all pages) and any large deposits to your asset accounts must also be documented.   FHA also allows for sellers to pay for your prepaids and closing costs as long as the buyer has met the minimum down payment/investment which is currently 3% (increases to 3.5% on October 1, 2008).   Family members can gift the down payment/required investment and for a limited time (October 1, 2008), down payment assistance programs are allowed (hurry on that one if you're at all interested).

FHA is not credit score sensitive--however for best pricing, the lowest mid score of all borrowers should be 600 or higher.  FHA does weigh the borrowers credit history--the last 12 months need to be free of late payments.

FHA has upfront and monthly mortgage insurance which stays with the mortgage until:

1. 60 payments have been made on time AND
2. The mortgage is at 78% of the original balance OR
3. The mortgage is terminated (from refinance, paying off with cash or selling the home).

Do make sure that you're working with a lender who is approved to provide FHA loans.   You can check HUD's site to be sure.  Many lenders are not and may try to keep your application and illegally broker or receive compensation from another lender.   I've noticed a scary trend of local lenders (not approved) trying to scoop FHA biz and it's been a nightmare for unsuspecting borrowers.   Also ask your Loan Originator how long they have been originating FHA mortgage loans--you'll want someone with enough experience to care for a purchase as significant as your home.

Today's FHA Mortgage Rates for Pierce, King and Snohomish Counties (as of 2:30 pm August 28, 2008)

30 Year Fixed for loan amounts up to $362,790:  6.250% (apr 7.059%)

30 Year Fixed for loan amounts up to $567,500:  6.375% (apr 7.181% ).   Note: after December 31, 2008, the FHA (and conforming) Jumbo loan limit will be reduced to $522,100 for the tri-county area.

To see what rates I'm quoting live, follow me on Twitter.   Remember, rates change constantly (often several times a day). 

Rhonda Porter, Certified Mortgage Planning Specialist and Licensed Loan Originator 510-LO-32047 at Mortgage Master Service Corporation.

I’m a mortgage pro, w/ 10 years real estate experience, a RE Broker License and am a CMPS and have spent the last month trying to figure this out because people are coming to me who need help.

I have talked to at least 10 firms who do the modifications and am doing the due diligence on them because most people having trouble making payments, well let’s face it,many of them have no business being a homeowner, and do not have the skills to find a company that will not prey upon them.

So to try and help them keep the home they bought, including assessing their situation, giving them the option of FHA Hope or loan mod, deed in lieu or short sale is a valuable service and I see nothing wrong with a mortgage pro getting compensation for that.

In my search for an experienced group who handles loan modification, short sales and recommends other options, I’ve talked to folks who are obviously out of the subprime phone rooms and passed on them.

I do think $2,000 is too much for a L.O to receive and am trying to figure out how to serve people and still make something for my time, research, due diligence and knowledge putting the client first.

Nice article. I would think that “desperate times call for desperate actions” might be applicable here. Most consumers are not capable of working out their own loan modification and the lenders are not staffed to work it out on their own. I think for the next two or more years, this is a service that will assist the market. I know when I am trying to handle a short sale prospect, when they tell me they still want to keep the home, I have nothing that I can do for them. That is where they need this type of specialist, at least from where I see it.

Thanks, Roger. Yah…some folks who were comfortable with their ARMS at the creation of their mortgage are now not. And some have had “life” pop up to cause them to change the plans they had when the mortgage was originated.

[...] and reconstructs them into a pseudo 3D world. More images = better tour.  An agent could take 400 photos in a house and instead of virtual tours, users can walk themselves through the [...]

My problem with the site is it should say “this is a paid site sponsored by” builders…or real estate companies…or whomever is paying for it that DOES stand to gain by people thinking it is “THE right time to buy. They shouldn’t be pretending it is paid for by someone who has nothing to gain or lose from the message. That just looks like an outright lie. And once you start lying to people…well the site loses credibility…no?

I may be to literal about it, but for me the key word is “time” and not subject to other reasonings. When someone asks “Is it a good/great/right ‘time’ to buy”, the time factor seems to be the reason for the question.

If a buyer is asking a real estate professional about right “time”, I don’t think they are referring to personal objective timings, but market timings.

But then I could be wrong.

If you ask your doctor when is a good time to buy, he will check the due date of the birth.

If you ask your accountant if it is a good time to buy, he will check your need for deductions this year vs. next.

If you ask your employer if this is a good time to buy, he will tell you the date of the actual job transfer.

If you ask your real estate professional if this is a good time to buy…well then…maybe he shouldn’t be looking at the doctor for the due date of the twins coming.

Who is being asked the question often defines what “right time” means. I guess there are many interpretations of “from a variety of credible sources.” But saying those credible sources have nothing to gain from the message is just an outright lie as far as I can see.

“We don’t sell any financial or real estate products or services” seems to be a stretch if the site is owned by the Master Builder’s Association. That would be like NAR saying that, and I guess technically it would be true, but not really. It seems misleading to have the verbiage that it is an unbiased site.

Nice job Rhonda.

I have conversations with borrowers like this several times a week.

Some folks that have an adjustment coming soon, into a favorable rate ARE choosing to refi, in anticipation of higher rates down the road, while some are standing pat, and enjoying their low payment.

Most importantly, it needs to be THEIR decision, and their prediction of future rates that drives tht decision.

I just recently heard about the National Mortgage Licensing System (NMLS) and cannot believe that state regulators are finally taking a step in the right direction.  NMLS started in January 2008 with seven states and has since added seven more.  The idea is to streamline mortgage broker and lender licensing through one clearinghouse application process.  In an ideal world, a person/business wishing to make or broker mortgage loans would be able to file one application and get a license in all fifty states.  But, we have often laughed at this prospect because this would require state regulators to cede some power to a federal type authority.  Here, the regulators themselves, through their association, decided they did not want to give up any power to a federal authority and just create a uniform application process.  The states will still have complete regulatory authority, but this system will allow a licensee to get licensed in multiple states at one time. 

While thinking about this great step for mortgage lending, I am reminded of a similar licensing situation that can cause incredible headaches for a start up.  That is selling insurance.  So often a person/business, which wants to sell insurance to clients in several states, spends so much time getting the proper license from each state.  The funny thing is that in this situation most states grant reciprocity to insurance agents from other states.  But, to get to that point you have to weave your way through the maze that is state beauracracy.  Maybe its time for the insurance regulators to step up and work together to create a national licensing system.  If they don't, the feds might just put them out of a job.

I am not saying that a federal authority would necessarily be better.  I think a locally based regulator, in the mortgage situation, may be more in touch with borrowers and be better equipt to protect them.  You can see how the feds handled mortgage lenders that they already regulate...or don't regulate as the case may be. However I also think it seems silly that a person trying to broker loans in say Pennsylvania, New Jersey and Delaware must follow potentially different regulations to do virtually the same thing.  I think the same is true for insurance brokers.

« Previous entries